The Chinese ‘Magnificent Seven’ is getting a new ETF

Roundhill Investments is looking to replicate the success of its Magnificent Seven ETF (MAGS) in China.

The company’s CEO, Dave Mazza, plans to launch the Lucky Eight ETF, which aims to be China’s answer to the success of Wall Street’s big tech stocks.

“There are a lot of question marks about the Chinese economy and the consumer growth potential in China,” Mazza told CNBC’s “ETF Edge” on Monday. “But ultimately, we believe that investors are looking for positions that give them precision, just like we found with MAGS.”

The Lucky Eight ETF, trading under the ticker ‘LCKY’, will include equal weighted exposure to Tencent Holdings, Alibaba.com, Meituan, BYDXiaomi, PDD companies, JD.com And Baidu at launch. According to Roundhill’s May 17 SEC filing, these names were chosen for their “market dominance in technology innovation.”

“Especially coming out of an economic slowdown, that could be an opportunity for investors to get into China and do it under the names that really matter,” Mazza said.

While existing exchange traded funds such as the KraneShares CSI China Internet ETF By providing broad exposure to Chinese technology, Mazza hopes to give investors the opportunity to focus on just a few key names in the sector.

“I firmly believe in broad diversification for large parts of a portfolio,” Mazza said. “But if you just want those names, it’s hard to get with some traditional Chinese ETFs. And this is going to do that.”

Pending SEC approval, the Lucky Eight ETF will launch this summer.

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